3 Free Forex Indicators That Still Get the Job Done
There is no denying the fact that forex trading and market proficiency goes hand in hand. To become a successful forex trader, you have to keep yourself updated with recent market trends. Technical indicators are an integral element of technical analysis that can be used to predict future price changes and market fluctuations.
Luckily, there are many best mt4 and mt5 forex indicators available online that can help you get the better idea about the market changes. In this post, we’ll explain 3 widely used free forex indicators that can ensure great trading results if used correctly.
How it Works?
Let’s admit it, forex traders put in lots of hard work in hope to get some profitable returns. The general misconception about technical indicators is that they’re only beneficial for new traders, but the fact is that they can be used by both novice as well as professional traders to save time.
Forex indicators are based on numerical formulas that make quick computations of numerous price parameters. All you need to do is to visit MetaTrader platform, click on insert and add your preferred indicator to the chart.
The Best Forex Indicators for 2020
Forex indicators are classified into different types and you can pick one or more indicators depending on your particular trading style and requirements. Below you will find three most popular technical indicators that are used by the majority of traders due to their functionality.
Moving Average also known as MA is basically a trend indicator that shows a mean value of a price over a certain time period. In other words, MA helps traders identify and follow the trend by following price fluctuations.
Moving Average recognizes the trend direction, determine reversals and depict potential support as well as resistance levels. A trend is bullish if the price exceeds MA and bearish when the price is less than the moving average.
Simply put, MACD is a technical indicator that demonstrates the market phase. It indicates when the forex market needs correction or rest. Technically, MACD is somehow based on MA except for the fact that it is included in the oscillator’s category of technical indicators. Generally, MACD histogram is used to indicate turns in price by showing considerable ups and downs, divergence and crossover between the chart and the signal line. In addition to that, when MACD interweave the zero line, it represents the bullish or bearish trends.
Bollinger Bands is another popular technical indicator which is used to measure market volatility. Technically, Bollinger Band comprises of 3 lines in which each line represents a Moving Average. The price is continuously encircling the middle band. Bollinger Bands can be a perfect choice for sideways market. There is a selling alert when price exceeds the upper band, while one should buy pairs when the price declines below the lower band.
Conclusion – Use These Three Indicators to Help Your Forex Trading
In conclusion, all the above enlisted technical indicators can do wonders if used at the right time and with right strategy. Make sure to invest some time in understanding what each line/signal/alert mean as it can help you better understand the results.